Opportunity for Year End Tax and Asset Planning
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Last Modified
on
Mar 12, 2025
First thing, of course, is be prepared. I tell everyone who will listen to do their financial and or tax planning on a monthly if not weekly basis. This will allow you to know where you stand financially and what taxes you owe at that moment so you can plan for the future.
Look at low interest rate loans. This will not necessarily affect your income statement, but it will affect your balance sheet.
If you are buying a home consider paying for it in cash and cash out refinancing then use the mortgage proceeds for investments. Doing so would allow you to classify interest on the loan as “investment interest” which you can deduct fully against your investment income. By contrast, interest classified as “qualified residence interest” is limited to interest on no more than $750,000 of acquisition debt. Also look at Grantor Retained Annuity Trust (“GRAT”) and Charitable Remainder Annuity Trust (“CRAT”).
Start thinking about potential year end tax planning. Look to see if you want to make annual exclusion gifts to family members, convert traditional IRA’s to Roth IRA’s, make charitable gifts or harvest tax losses in your investment portfolio.
About the author:
Ken R. Ashworth
Founding Attorney of Ken R. Ashworth & Associates
Ken R. Ashworth is the Founding Attorney of Ashworth Law in Henderson, Nevada. He focuses his practice on asset protection, business litigation, estate planning, and tax litigation. Ashworth has practiced law since 1992 and is admitted to the State Bar of Nevada. He earned his J.D. from Pepperdine University School of Law in Malibu, California, in 1990. His work includes advising clients on legal matters involving businesses, estates, asset protection, and tax disputes.
